LIONSGATE REVENUE DROPS BY 20%, OTT SUBSCRIBER COUNT RISES DURING Q3

Lionsgate revenue dropped to USD 745 million last quarter, representing a 20% decrease from its previous USD 938 million last year. The company’s earnings, however,  topped Wall Street projections with adjusted operating income of $156 million, 56% above consensus and 33 cents earnings per share, 94% above estimates for its second quarter that ended 30th September. “Together with the resumption of film and television production and another great revenue performance from our library, it added up to a quarter that reflected strong financial results, acceleration of our key non-financial metrics, and affirmation of the business plan we created four years ago with the acquisition of Starz and our pivot to the streaming world," said Lionsgate CEO Jon Feltheimer.

 The company's Starz network reported a spike in domestic OTT subscribers, rising from 7.4 million to 9.2 million. OTT subscriptions worldwide jumped by 2.3 million in the quarter to 13.7 million. THe company acquired Starz to compete with other media conglomerates such as Disney and Comcast. 

Employees were informed that the company will lay off 15% of its motion picture group as a direct result of the pandemic. It currently has approximately 450 employees. The company reported USD 166.7 million in library revenue in the quarter, bringing the last year to a record USD 738.5 million. Motion Picture Group segment profit rose 63% on lower advertising costs and strong demand for library content during the pandemic.

The stock increased by nearly 4% after rising 2% for the session. Accoridng to Vice-chairman Michael Burns, the company’s growth and positioning are not reflected in its stock price. With a net loss of USD 18.4 million from a USD 1.8 million profit the year before, experts believe that unlike a significant portion of the industry, Lionsgate has not been severely impacted by increasing costs for sports rights, closed theme parks, and the ad market.